The escalating conflict in West Asia has raised serious concerns for Nepal’s economy, which depends heavily on remittances from the region. According to the Nepal Rastra Bank, 41 percent of Nepal’s total remittance inflow originates from Middle Eastern countries. NRB Executive Director Ram Sharan Kharel warned that the Rs 1.62 trillion in remittances recorded between December 16, 2025 and January 14 could decline sharply if the conflict intensifies. About 1.8 million Nepali migrant workers are currently employed in the region, including roughly 915,000 in the UAE, 385,000 in Saudi Arabia, and 358,000 in Qatar.
